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zlopas [31]
3 years ago
11

Joe runs a restaurant. He pays his employees​ $200,000 per year. His ingredients cost him​ $50,000 per year. Prior to running hi

s​ restaurant, Joe was a lawyer earning​ $150,000 per year. What would economists say is​ Joe's cost of running the​ restaurant?
Business
1 answer:
Elanso [62]3 years ago
3 0

Answer:

Cost incurred while running a restaurant:

Salary paid = $200,000 per year

Ingredients cost =  $50,000 per year

Before running this restaurant, he was earning $150000 per year.

Here, we are using a concept called opportunity cost.

Opportunity cost refers to the benefit of a commodity that is forgone to produce one extra unit of some other commodity.

It is also refers to the value of next best alternative that is given up by choosing some other alternative.

In this question, opportunity cost of running a restaurant is the income that is earned when he was a lawyer, i.e, $1,50,000 per year. This is the income that is foregone when he started running a restaurant.

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At the beginning of July, CD City has a balance in inventory of $2,450. The following transactions occur during the month of Jul
denpristay [2]

Answer:

CD City

a. Journal Entries, using perpetual inventory system:

July 3:

Debit Inventory $1,350

Credit Accounts Payable (Wholesale Music) $1,350

To record purchase of CDs on account, terms, 2/10, n/30.

July 4:

Debit Freight-in $110

Credit Cash $110

To record cash payment for freight.

July 9:

Debit Accounts Payable (Wholesale Music) $200

Credit Inventory $200

To record return of CDs.

July 11:

Debit Accounts Payable (Wholesale Music) $1,150

Credit Cash Discount $23

Credit Cash $1,127

To record full settlement on account.

July 12:

Debit Accounts Receivable $3,900

Credit Sales $3,900

To record sales of CDs on account.

Debit Cost of Goods Sold $2,050

Credit Inventory $2,050

To record the cost of sales.

July 15:

Debit Cash $3,900

Credit Accounts Receivable $3,900

To record cash receipt from customers.

July 18:

Debit Inventory $2,150

Credit Accounts Payable (Music Supply) $2,150

To record purchase of CDs on account, terms, 2/10, n/30.

July 22:

Debit Cash $3,250

Credit Sales $3,250

To record cash sales.

Debit Cost of Goods Sold $1,550

Credit Inventory $1,550

To record cost of sales.

July 28:

Debit Accounts Payable (Music Supply) $110

Credit Inventory $110

To record return of CDs.

July 30:

Debit Accounts Payable (Music Supply) $2,040

Credit Cash $2,040

To record full settlement.

b. Top Section of Multiple-step Income Statement for the month of July:

Sales                              $7,150

Cost of Goods Sold = ($3,600)

Gross Profit             = $3,550

Explanation:

a) Sales

July 12 =  $3,900

July 22 = $3,250

Total $7,150

b) Inventory

Beginning Balance = $2,450

July 3 purchase    =      1,350

July 9 return         =       -200

July 12 cost of sales  -2,050

July 18 purchase   =     2,150

July 22 cost of sales  -1,550

July 28 return       =        -110

Ending Balance    =  $2,040

c) Cost of Goods Sold

July 12 cost of sales  $2,050

July 22 cost of sales    1,550

Total  $3,600

8 0
3 years ago
You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 29%. The T-bill rate is 8%. Your
Anastasy [175]

Answer:

13.85% and 18.9%

Explanation:

As in this exercise we have a free risk asset we will assume that the t-bill has a standard deviation of 0%, so let´s firts calculate the expected return:

E(r)=r_{1}*w_{1} +r_{2}*w_{2} +....+r_{n}*w_{n}

where E(r) is the expected return, r_{i} is the return of the i asset and w_{i} is the investment in i asset, so applying to this particular case we have:

E(r)=17\%*65\%+8\%*35\%

E(r)=13.85\%

the calculation of standar deviation follows the same logic of the previous formula:

Sigma(r)=29\%*65\%+0\%*35\%

Sigma(r)=18.9\%

4 0
3 years ago
Wilson Co. has three segments -- Tennis, Golf, and Fishing. The Tennis segment is currently producing 2,000 units annually. The
frutty [35]

Answer:

$400,000

Explanation:

Calculation to determine the differential revenue if Wilson Co. were to eliminate the Tennis segment

Differential revenue= $200x2,000 units

Differential revenue= $400,000

Therefore the differential revenue if Wilson Co. were to eliminate the Tennis segment will be $400,000

6 0
3 years ago
Managers organize information about a given job by performing a job analysis to determine the following with regard to that job:
Law Incorporation [45]

Answer:

All of the above.

Explanation:

Job analysis is when manager uses information available as a criteria for determining attributes required to perform a job.

In job analysis, information is made available to managers to know which employee is best suited for a particular role. It is also used to measure the capacity of employees whether they are being under or over utilized.

For effective job redistribution, job analysis is best recommended because it describes the work of current employee, working conditions and necessary educational certifications. Skills needed to perform on a role are also part of what is being considered in job analysis.

5 0
3 years ago
One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such
Darina [25.2K]

The benefit would decrease by $7,020 annually would be the answer.

According to the 2022 Annual Report of the Social Security Board, the surplus of trust funds paying severance, disability, and other social security benefits will be exhausted by 2035. This is a year behind what the Board of Trustees predicted in its 2021 report.

If you are less than the full retirement age and exceed your annual income limit, your benefits may be reduced. If you haven't reached full retirement age throughout the year, you will be deducted $ 1 from your benefits for every $ 2 you earn over your annual limit. For 2022, the limit is $ 19,560.

Learn more about Social Security payroll here:brainly.com/question/1156607

#SPJ4

5 0
1 year ago
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